How does Asset-Based Lending work?
Step 1 We underwrite your business to establish a facility. This process can take several weeks due to the need to complete a field exam and/or asset appraisal. |
Step 2 Upon the facility being approved and documented, you submit a completed borrowing base certificate with current accounts receivable aging, inventory reporting (as applicable), and equipment reporting (as applicable). |
Step 3 Our team validates a portion of the submitted receivables and then provides availability based on agreed-upon advance rates on accounts receivable, inventory, and equipment. |
Step 4 You can then draw on that availability as needed. |
Step 5 Payments from your customers are applied to the outstanding balance (net of any fees). |
Step 6 On the agreed-upon cadence, an updated borrowing-based certificate with supporting reporting is provided to refresh the availability. |